- Summary:
- The VeChain price action suggests the worst may be over as buyers emerge at a critical level to keep the bull market dream alive.
The VeChain price action suggests the worst may be over as buyers emerge at a critical level to keep the bull market dream alive.
VeChain (VET) is trying to string together a fourth consecutive day of gains on Tuesday. The VET token is marginally higher at $0.1210 in early Asian trade, extending the bounce from Sunday’s low to 16%. However, despite the bounce, VET is around 36% below the six-month high set earlier this month and trading at a 57% discount to May’s all-time high. As a result, VeChain’s market cap has slid from $12b earlier in the month to around $7.8b at the current level, ranking it the 27th-largest cryptocurrency, behind Elrond.
November has been a tale of two halves for the cryptocurrency market. At the start of the month, the combined value of the market reached a record high of $3 trillion. However, the euphoria surrounding the Bitcoin ETF approval gave way to several bearish developments. A strong US Dollar, talk of an Indian Bitcoin ban, and the arrival of the Omicron covid variant have wiped almost $400 billion from the market. As a result, VET broke down below the major moving averages and almost perfect tagged trend support on Sunday.
VET price Analysis
The daily chart shows the VeChain price bounced perfectly from trend support at $0.1040 on Sunday. Subsequently, VET has climbed above the 200-DMA at $0.1127 and is approaching the 100-Day at $0.1253. Successful clearance of the 100-DMA should encourage momentum towards the September high of around $0.1600.
However, a close below $0.1227 brings the trend support back into focus. Furthermore, a break of the trend will be highly bearish for the price. In that event, a logical downside target is the September lows around $0.0894.
VeChain Price Chart (Daily)
For more market insights, follow Elliott on Twitter.